Canadian National Railway (CN) has reported that net income in the 2016 third quarter, which ended on September 30, 2016, was C$972 million, or C$1.25 per diluted share, compared with the 2015 third quarter net income of C$1,007 million, or C$1.26 per diluted share.
"With solid execution from our industry-leading operating team and a network-wide focus on providing quality service, CN delivered outstanding results in the third quarter while facing a still sluggish North American and global economy,” stated Luc Jobin, CN president and CEO.
Revenues for the third quarter of 2016 were down by 6 percent to C$3,014 million, and carloadings declined by 4 percent in the quarter.
Operating expenses dropped by 7 percent to C$1,607 million, and operating income decreased five percent to C$1,407 million. The third quarter operating ratio reached a record 53.3 percent, a 0.5-point improvement over the 2015 third quarter's performance.
“Despite shifting traffic demands, including a delayed Canadian grain harvest, we remained flexible and service-focused,” added Jobin. “We also continued to reinvest in our business and infrastructure, investments that are driving ongoing safety, service and productivity improvements, while we maintained our commitment to providing the long-term value that helps CN and its customers succeed."
CN is raising its financial outlook, expecting its 2016 adjusted diluted EPS to be up approximately 1 percent versus last year's adjusted diluted EPS of C$4.44 (compared with its July 25, 2016, financial outlook calling for 2016 adjusted EPS to be in line with last year).